Person Nominated By Deceased Cannot Claim Right Over Estate, Defeat Law Of Succession When Other Legal Heirs Have Claim: Karnataka HC

A single judge, Justice Hanchate Sanjeevkumar held thus while dismissing an appeal filed by one Annapurna who had challenged the order of the trial court rejecting her application to be impleaded in the suit filed by the legal heirs of deceased Kantesh Khandagale seeking issuance of succession certificate under Section 372 of the Indian Succession Act.

The appellant contended that the deceased Kantesh had during his lifetime purchased an Insurance Policy by making the appellant as a nominee. Therefore, the appellant by contending being a nominee is legally eligible to receive the policy amount.

The appellant contended that she is a nominee made by the deceased, therefore she is legally and lawfully eligible to receive the said policy amount, but not by respondent Nos.1 and 2.

Relying on Section 39(7)(8) of the Insurance Act, 1938, it was contended that since the appellant is the only nominee in the policy as nominated by the deceased, therefore, the appellant alone is entitled to receive the amount of the insurance policy. If the succession certificate is granted as per the order of the Trial Court, then it would be difficult for the appellant to receive the amount under policy.

Findings:

The bench noted that the appellant was a nominee when the deceased purchased an insurance policy from respondent No.3. Then it said “Just because the deceased has made the appellant as nominee, that does not defeat the law of succession, when other legal heirs are having a right to claim estate of the deceased.”

Observing that the purpose of making a nomination is to discharge the initial burden of the banker/insurance institution to pay the amount to the nominee without keeping themselves.

It said, “But, just because a nominee is made it does not create any disentitlement by other legal heirs as per their right vested under the law of succession.”

Referring to the Supreme Court judgment in the case of Smt. Sarabati Devi and Another V/s Smt. Usha Devi 1984, the court said “There is no merit in the contention taken by the appellant that just because the appellant is made as nominee then, she alone is entitled to receive the entire amount depriving the right of other legal heirs. Therefore, the appeal is liable to be dismissed having no merits to consider the case.”

Appearance: Advocate Avinash Banakar for Appellant.

Citation No: 2025 LiveLaw (Kar) 66

Case Title: Annapurna AND Kavita & Others

Case No: REGULAR FIRST APPEAL NO. 100004 OF 2025

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